Whirlpool wins anti-Chinese dumping case

Two international companies have been called out and punished for unfairly 'dumping' products inthe U.S. market, a practice that harmed Whirlpool, and indirectly, workers in Ohio andelsewhere.

The U.S. International Trade Commission, a federal agency that oversees trade issues, ruled thisweek that Samsung and LG residential washing machines made in China were sold in the U.S. for lessthan they cost to make.

It was the second time in four years that Whirlpool Corp. has been successful in such claimsagainst the two companies.

The washers are made at Whirlpool's plant in Clyde in northwestern Ohio; Whirlpoolalso has operations in Marion.

The plant in Clyde makes washers that are mostly sold in the United States. About 10 percent areexported.

The ruling means that duties, or taxes, will be applied to washers imported from China " 52.5percent for Samsung and 32.1 percent for LG, according to Whirlpool, which is based in BentonHarbor, Michigan.

'This is a gratifying win for American manufacturing, particularly our more than 3,000 employeesat our factory in Clyde, Ohio, who make clothes washers for American consumers,' said Jeff Fettig,Whirlpool's chairman and CEO, in a statement.

'The government made the right decision (Tuesday), affirming that Samsung and LG's long-termpattern of serial dumping injures American appliance manufacturers and threatens U.S. jobs. Byenforcing and applying trade remedies that help ensure fair competition, the government supports asolid U.S. manufacturing base and continued investments in innovation that improve the lives ofconsumers.'

During a hearing before the commission last month, John Toohey, director of strategy at LGElectronics USA, disputed the notion that the company was dumping its product.

He said the goal was to create a 'lifelong relationship' between consumers and the LG Brand. Hesaid the company does not sell a 'conventional washer' like ones sold by Whirlpool.

Fettig told the commission last month that, because of the dumping, Whirlpool canceled a majorinvestment in Clyde that would have create 1,300 jobs in Clyde and thousands more across thecountry.

The case with Whirlpool comes about four years after the federal government found that Samsungand LG were making large residential clothes washers in South Korea and Mexico and dumping them inthe United States. Both companies were hit with duties as a result. Samsung and LG then moved theirwasher production to China to circumvent that ruling.

That appears to be happening again.

Fettig testified that since Whirlpool filed its petition, the companies have been shiftingproduction to Vietnam and Thailand to avoid paying the duties.

'Whirlpool's washer business was very profitable before Samsung and LG began dumping in theUnited States,' he said.

'We have created thousands of American jobs and could have created much more. But in the currentenvironment, Whirlpool's washer business has suffered significant operating losses. We've suffereda negative return on all of our prior investment. We've canceled new investment in future products,and this is preventing us from creating thousands of new jobs.'

Ohio's U.S. senators, whourged the commission to take action in favor of Whirlpool at a hearing lastmonth, issued a statement praising the decision.

'This decision will level the playing field for Whirlpool workers in Clyde and across Ohio whosejobs have been threatened for years by dumped washing machine imports from China,' Democrat SherrodBrown said.

'This decision is a step in the right direction in ensuring that Whirlpool's workers in Ohio geta fair shake against unfair imports,' Republican Rob Portman said. 'Having been to the Clyde plantthat makes these washing machines, I know that the workers there make a world-class product asefficiently as anyone, and with a level playing field, can compete and win.'

mawilliams@dispatch.com

@BizMarkWilliams

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